Episode

Key Takeaways

Grid expansion faces challenges due to insufficient capital, resources, and human capital, impacting affordability.
WeaveGrid aims to transform electric vehicles and other distributed resources into valuable grid assets.
Effective orchestration and management are crucial for distributed energy resources to provide meaningful grid value.
Building trust between consumers and grid operators is vital for successful adoption of advanced grid technologies.
Improving data visibility within lower-voltage distribution systems is key for enhanced grid reliability and efficiency.

Apoorv Bhargava co-founded Weave Grid in 2018 with John, a former Tesla employee.
The company's thesis is to build a platform enabling utilities and customers to leverage electric vehicles (EVs) as mobile batteries.
EVs are seen as increasingly significant mobile batteries that are becoming connected to the grid.

WeaveGrid operates an Edge DERMS (Distributed Energy Resource Management System), managing aggregated resources for utilities.
The platform aggregates customer-owned resources for grid management, potentially deferring infrastructure upgrades or shifting energy use.
The term 'Virtual Power Plant' (VPP) is noted to diminish the unique value of aggregated customer resources, which offer localized grid benefits but lack traditional power plant dispatchability.
WeaveGrid addresses distribution-level reliability by tackling issues like overloaded transformers caused by simultaneous EV charging.

WeaveGrid operates as an enterprise SaaS platform, integrating deeply with utility IT and OT systems, including SCADA.
The company digitizes physical infrastructure by combining existing imperfect data with its own telemetry on user behavior.
This approach enables cloud-based optimization and dispatch for granular, device-level control, from transformers to system-wide solutions.
Their platform, DISCO (Distribution Integrated Smart Charging Orchestration), provides system-wide flexibility through a patented, distributed systems approach.

WeaveGrid started its focus with Electric Vehicles (EVs) due to their growing impact, with 7.5 million vehicles representing 40 GW of capacity.
Customers must opt into utility programs, allowing the platform to access charging data from EV servers for granular optimization.
The platform's data collection extends beyond EVs to include home energy storage and smart appliances like thermostats.
The goal is to create systematic-wide capacity by integrating distributed resources from the distribution edge up to generators, moving beyond traditional demand response.

A core issue for Virtual Power Plants (VPPs) and advanced grid technologies is balancing utilities' need for rapid grid control with customers' desire for device autonomy.
Building trust between customers and grid operators is crucial, as past negative experiences highlight the difficulty in persuading people to cede control.
Managing distributed resources like EV charging behavior is seen as more adaptable than altering customer comfort levels with thermostats, which requires careful management.
Grid operators are increasingly adapting to managing dynamic and flexible resources, requiring reliable data on resource performance to build trust.

Utilities face limitations in controlling consumer behavior at the residential level, leading to independent investments in solar and storage.
Arbitrage in markets like Texas (ERCOT) initially attracted battery investments, but current conditions offer minimal returns for arbitrage strategies.
WeaveGrid's business model focuses on aggregating distributed resources for utilities to arbitrage against infrastructure build-out.
This strategy addresses the long lead times and complexity of deploying physical infrastructure like poles and wires.

The US is projected to see a 50-100 gigawatt increase in demand over five years, largely driven by data centers.
Platforms like WeaveGrid aim to increase distribution grid utilization from 25% to 50-60%, spreading existing infrastructure costs over more kilowatt hours.
While new infrastructure is necessary, relying solely on physical build-out will lead to unacceptable consumer costs.
Scaling energy programs from pilot phases to over 10 gigawatts is considered feasible, with regulators approving transitions.

Autonomous Vehicle (AV) fleets, particularly ride-sharing services, could integrate mobility with grid services.
Current modeling suggests that pure arbitrage in power markets for AV fleets offers only incremental value, making it difficult as a primary business model.
An opportunity arises if AV fleet operators agree to controlled charging curtailments during peak demand to save on infrastructure upgrades and lower energy costs.
AVs could save infrastructure time and money through controlled charging, rather than primarily acting as aggregated power plants for grid markets.